China's new tax permits on rare earth miners (REMX +3.3%) there will enable the government to...

China's new tax permits on rare earth miners (REMX+3.3%) there will enable the government to control supply "to a certain extent" by forcing producers to sell their finished products based on production and export quota allocations, Rahul Jalan writes. Previous efforts to control rare earths have sent prices outside China skyrocketing, but today's market reaction could foreshadow a different outcome.

This will either allow them to bring even more electronics, automotive and micro-component manufacturers into China or whenever their production demands wane, flood their competitors with cheap subsidized rare earth to put them all out of business.